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Investing.com - Jefferies has upgraded Zions Bancorp (NASDAQ:ZION) from Underperform to Hold and raised its price target to $60.00 from $45.00, citing the bank’s strong second-quarter performance. The bank, currently trading at a P/E ratio of 4.5x and showing an 18% return over the past year, appears undervalued according to InvestingPro analysis.
The upgrade reflects a more constructive outlook on key growth drivers including loans, net interest income (NII), and fees for the regional bank.
Jefferies believes Zions’ improved trajectory supports growth more in-line with peers, specifically projecting mid-single digit growth for both net interest income and fees.
The firm has adjusted its target multiple to 10.4x from the previous 8.3x, though this remains below the peer median of 11.9x.
Jefferies’ new estimates project 17% earnings per share growth for Zions in 2025, followed by 2% growth in 2026.
In other recent news, Zions Bancorporation reported impressive financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company’s earnings per share reached $1.63, significantly above the forecasted $1.31, while revenue totaled $838 million, exceeding the anticipated $811.06 million. This performance reflects a 28% year-over-year increase in net earnings, amounting to $243 million. The bank’s net interest margin expanded for the sixth consecutive quarter, reaching 3.17%, contributing to this growth. Additionally, Zions Bancorporation has been active in launching new financial products and expanding its small business loan program. Analysts have taken note of the company’s strong performance, although specific upgrades or downgrades were not mentioned in the recent reports. The bank also highlighted its strategic focus on talent acquisition and efficiency improvements, with plans to continue enhancing its net interest income in 2026. These developments showcase Zions Bancorporation’s ability to consistently outperform market expectations.
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